The Cost of Funds Index reversed course and turned higher, as did a far more popular index for adjustable-rate loans.
As of
May, the index was reported at 0.687 percent, according to data released by the Federal Home Loan Bank of San Francisco.
The 11th District COFI
moved up from the previous month, when it was 0.680 percent.
The increase followed two consecutive months of decline.
But the index still sits below its level as of May 2014, when it was calculated at 0.667 percent.
The FHLB San Francisco determines the index based on the interest expense of member banks based in Arizona, California and Nevada.
In May 2015,
average total funds used in COFI’s calculation were $16.1 billion.
COFI is used as an index on some adjustable-rate mortgages.
A much more widely utilized ARM index, the yield on the one-year Treasury, climbed from 0.24 percent at the end of April to 0.26 percent at the end of May, according to data reported by the Department of the Treasury.
The one-year Treasury yield finished June at
0.28 percent.
ARM share was 8.5 percent in the U.S. Mortgage Market Index report from OpenClose and Mortgage Daily for the week ended June 26.
